North East Small Finance Bank commences operations: RBI

The Reserve Bank of India (RBI) said on Tuesday the North East Small Finance Bank has commenced operations.

A small finance bank has been envisioned to undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections.

The development comes after the RBI issued a licence to the North East Small Finance Bank to carry out the business of small finance bank.

"RGVN (North East) Microfinance Limited, Guwahati was one of the ten applicants which were issued in-principle approval for setting up a small finance bank, as announced... on September 16, 2015," the RBI said in a statement.